The association between privatisation and voluntary disclosure: evidence from Jordan
Al-Akra, M, Eddie, IA & Ali, MJ 2010, 'The association between privatisation and voluntary disclosure: evidence from Jordan', Accounting and Business Research, vol. 40, no. 1, pp. 55-74.
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This paper investigates the impact of privatisation on the extent of corporate voluntary disclosure in Jordan.We conduct a longitudinal examination using 243 annual reports of 27 privatised firms in Jordan over a period of nine years from 1996 to 2004. Employing univariate and pooled regression models our results show that privatisation is positively associated with voluntary disclosure. Specifically, we find that accounting regulation reforms and foreign investments accompanying privatisation have a significant impact on the levels of accounting disclosure in Jordan. Our study provides evidence on the role of privatisation in improving the disclosure culture as an important pre‐condition for the development of active capital markets.